Corporate Governance in Vietnam

Abstract

Corporate governance (CG) success stories in Vietnam are part of the International Finance Corporation’s ongoing efforts to raise greater awareness of the merits of CG. These success stories in Vietnam can serve as a guiding light for the immediate benefit and long-term value of CG to corporate development. The Law on Enterprise 2005, implemented in July 2006, marked the first introduction of a formal legal framework on CG in Vietnam. CG practice in Vietnam is expected to undergo sweeping changes when the revised Law on Enterprise (LOE) 2014 comes into effect on 1st July 2015. The revised LOE 2014 ensures independence of the Board of Directors, seeks to eliminate conflict of interest, and to improve accountability as part of Vietnamese government’s drive to ensure better CG.